On September 14, 1998, former President Clinton signed Executive Order (EO)13101, entitled "Greening the Government through Waste Prevention, Recycling and Federal Acquisition." Executive Order 13101
(EO 13101) supersedes EO 12873, Federal Acquisition, Recycling and Waste
Prevention, issued on October 20, 1993, but retains a similar requirement
for the U.S. Environmental Protection Agency (EPA) to develop guidance
to "address environmentally preferable purchasing." (Section
503, EO 13101) The Final Guidance that follows is based on EPA's
September 1995 Proposed Guidance on the Acquisition of Environmentally
Preferable Products and Services (60 FR 50721, September 29, 1995) and
comments received on that Proposed Guidance as well as lessons learned
from pilot projects conducted to date.

The Final Guidance below is designed to help Executive agencies
meet their obligations under EO 13101 to identify and purchase environmentally
preferable products and services. Section 503 (c) of EO 13101 directs
Executive agencies to "use the principles and concepts in the EPA
Guidance on Acquisition of Environmentally Preferable Products and Services,
in addition to the lessons from the pilot and demonstration projects to
the maximum extent practicable, in identifying and purchasing environmentally
preferable products and services" and "modify their procurement
programs as appropriate." Furthermore, Section 23.704 of the Federal
Acquisition Regulation requires agencies to "affirmatively implement"
the objective of "obtaining products and services considered to be
environmentally preferable (based on EPA-issued guidance)."

"Environmentally preferable" is defined in Section
201 of EO 13101 to mean products or services that "have a lesser
or reduced effect on human health and the environment when compared with
competing products or services that serve the same purpose. This comparison
may consider raw materials acquisition, production, manufacturing, packaging,
distribution, reuse, operation, maintenance or disposal of the product
or service."

Implementation of the Final Guidance will draw on the procurement
experience of the Executive agencies and on the environmental expertise
of EPA and other organizations both within and outside of the Federal
government. This guidance provides a broad framework of issues to consider
in environmentally preferable purchasing and will help Executive agencies
systematically integrate environmental preferability principles into their
buying decisions.

The guidance is not, however, a step-by-step, "how
to" guide and it is not intended to answer many of the specific questions
that might arise in the acquisition of a particular product category or
service. The list of resources in Section VI provides more specific guidance
and information about various product and service categories, environmental
attributes that have been identified for them, and the approaches used
to consider those attributes in acquisition decisions. For the latest
information on other resources and tools under development, Executive
agency personnel and others are directed to EPA's Environmentally
Preferable Purchasing Program Web site.

The Final Guidance strives to meet the National Performance
Review and procurement reform goals of simplifying and streamlining Federal
purchasing while recognizing that the definition of "environmentally
preferable" will likely require the consideration of different environmental
factors as appropriate for different situations. In sum, the guidance:

Applies to all acquisition types, from supplies and
services to buildings and systems.

The target audience of this guidance includes all Executive
agency employees involved in the acquisition of supplies, services, systems,
and/or facilities. The general guidance and the information generated
by the pilot projects also will be useful to Executive agency employees
who request, maintain, or use the supplies, services, systems and facilities.
In addition, both the general guidance and the pilot project information
should provide pragmatic direction for private sector businesses who wish
to manufacture, market, or provide environmentally preferable products
and services for use by the Federal government.

Section 503 of EO 13101 has two key components: (1) development
of this guidance; and (2) implementation of the guidance through pilot
and demonstration projects. This guidance sets a broad policy framework
for implementing environmentally preferable purchasing within the context
of Federal government. For the second component, Section 503 (b) of the
EO states "[A]gencies are encouraged to immediately test and evaluate
the principles and concepts contained in the EPA's Guidance... through
pilot projects...". These pilots may be undertaken using the in-house
expertise of EPA and other Executive agencies, as well as the technical
expertise of nongovernmental entities, including, but not limited to,
voluntary consensus standards bodies (see§ 12(d) of the National Technology
Transfer and Advancement Act (Pub. L. 104-113, §12(d), 15 U.S.C. 272 note),
environmental standard setting organizations, third party certification
programs, environmental labeling or environmental "report card"
programs, and other environmental consulting organizations. Section V
of this Final Guidance provides more detail about how these pilot projects
might work. These pilots are expected to yield more specific and practical
information about applying this Final Guidance to purchases of particular
products and services.

Bio-based products may also be environmentally preferable.
Made from renewable resources by definition, these products have many
positive environmental aspects and should be considered by agencies looking
to make environmentally preferable purchases. However, Federal purchasers
should not assume all bio-based products are automatically environmentally
preferable. As with other products, Executive agencies should consider
a range of environmental impacts associated with bio-based products when
making purchasing decisions. In some cases, factors such as pesticide
use or high water consumption might make a bio-based product less environmentally
preferable. The list of bio-based products which the U.S. Department of
Agriculture will issue under Section 504 of EO 13101 will be a good starting
point for Executive agencies looking to identify environmentally preferable
purchasing. During the development of pilots under Section 503 (b) of
the EO, EPA will look for opportunities involving bio-based products.

EPA has developed five guiding principles to provide broad
guidance for applying environmentally preferable purchasing in the Federal
government setting. Applicability of these principles in specific acquisitions
will vary depending on a variety of factors, such as: the type and complexity
of the product or service being purchased; whether or not the product
or service is commercially-available; the type of procurement method used
(e.g., negotiated contract, sealed bid, etc.); the time frame for the
requirement; and the dollar amount of the requirement.

In all acquisitions, Executive agency personnel use their
professional judgement and common sense, whether assessing a product or
service's performance, cost, or availability. Similarly, in applying
these environmentally preferable principles Executive agency personnel
should use reasonable discretion about the level of analysis needed to
determine environmental preferability. For example, an extensive life
cycle assessment might not be conducted to purchase rubber bands. On the
other hand, for large-volume or systems acquisitions, or for complex products,
such assessments may be appropriate, and might already be required. Or,
in some cases, much of the information upon which to build such an analysis
might have already been collected.

Environmental considerations should become part of normal purchasing
practice, consistent with such traditional factors as product safety,
price, performance, and availability.

The manufacture, use, and disposal of certain products might
have adverse impacts on human health and the environment. These impacts
impose costs that the purchasing entity, and ultimately, society as a
whole, end up paying for in one way or another. For the Federal government,
the hazardous or toxic nature of a product or service can result in significant
cleanup or liability costs, as well as in less directly quantifiable,
but cumulative and persistent environmental damage. Even non-hazardous
waste is associated with ever-increasing disposal costs that can be avoided
or reduced. Responsible management, beginning with the initial purchase
of products and services that minimize environmental burdens, can diminish
the Federal government's raw material, operating, maintenance, and
disposal costs. In addition, a product or service's environmental
preferability can often have positive impacts on its overall performance.

For these reasons, the Federal government's purchasing
decisions are no longer confined to considerations of price and functional
performance but should include considerations of environmental performance
as well. Today agencies can obtain improved environmental attributes not
at the expense of, but instead may operate in concert with, other traditional
factors like price and functional performance. Those product or service
providers who can optimize all these factors will capture and maintain
the largest market-share of government customers.

Just like price, performance, and health and safety, environmental
factors should be a subject of competition among vendors seeking government
contracts. In turn, this increased competition among vendors should stimulate
continuous environmental improvement and increase the availability of
environmentally preferable products and services. The purpose of this
guidance is to encourage Executive agencies to award contracts to companies
that take environmental concerns into account. This process, consequently,
will lead to the development of environmentally preferable products and
services that perform better and cost less because they reduce waste and
negative environmental impacts. As stated, this principle reflects the
spirit of a number of reinvention initiatives at EPA and across the Federal
government aimed at testing cleaner, cheaper, and smarter approaches to
environmental protection.

Agencies have considerable discretion in incorporating environmental
preferability into procurement decisions, especially within the context
of "best value" contracting. For example, environmental considerations
that result in payment of a price premium for goods or services may be
reasonably related to an agency's definition of its "minimum
needs" and, therefore, may be permissible. This is not much different
than paying a higher price for better performance or quality. Federal
personnel may consider paying a reasonable premium for environmentally
preferable products on a number of grounds. For example, a reasonable
price premium may be justified because the environmental attributes of
a product or service provide offsetting reductions in operating and disposal
costs.

Consideration of environmental preferability should begin early in
the acquisition process and be rooted in the ethic of pollution prevention,
which strives to eliminate or reduce, up-front, potential risks to human
health and the environment.

It is never too early in the acquisition process to begin
considering environmental preferability. Pollution prevention, the reduction
or elimination of waste at the source, can not only reduce pollution,
but it can save money for agencies as well. Defense and civilian Federal
agencies have ongoing programs for pollution prevention under EO 12856
and other authorities that can result in cost savings throughout the product
or service life cycle. Furthermore, pollution prevention measures can
lead to a higher degree of environmental protection by reducing subsequent
costs for disposal or cleanup of hazardous wastes and materials. A key
reason for environmentally preferable purchasing is to protect the environment
by reducing waste and pollution at the source with the resulting benefit
of reduced overall cost to the government and the public (taxpayers and
society as a whole).

Under this guiding principle, pollution prevention should
be the primary motivation and strategy for the Federal government's
implementation of environmentally preferable purchasing. There are many
ways to apply pollution prevention to the acquisition process:

a. Customized purchases or projects in which program
managers, architects, engineers, systems designers, or others have input
into the design phase afford agencies an early opportunity to apply environmentally
preferable concepts. In addition, early involvement offers agencies a
unique point of leverage from which to address environmental impacts.
Although these types of purchases are not the bulk of Federal acquisition
requirements, the early stage of customized product or project design
is the time when decisions about different approaches, materials, and
manufacturing processes are made. Estimates show that 70 percent or more
of the costs associated with product development, manufacture, and use
are determined during the initial design stages.1 By incorporating environmental factors during product or service design,
Federal agencies can minimize environmental problems and their associated
costs. For example, early environmental consideration helps agencies avoid
potential liabilities due to fines as well as the costs of record keeping
and reporting.

b. During the early stages of acquisition, Executive
agency personnel can also apply a systems analysis approach for certain
products or services (such as computers, buildings, and transportation
systems) in which a number of components have interdependent functions.
A systems analysis approach takes into consideration the full set of product
elements, focusing on how they interact from a life cycle perspective
and helping to identify the most efficient options for meeting the government's
needs.

c. Executive agency personnel might also appropriately
ask whether a product or a service is even necessary or can be replaced
by a less damaging process. For instance, in degreasing operations, questions
arise as to whether an efficient cleaner using halogenated solvents is
better or worse for the environment than an aqueous-based cleaner. A more
appropriate question may be whether the cleaning/degreasing step can be
eliminated without affecting the overall performance of the product or
system. This might be accomplished, for example, by consolidating cleaning
and degreasing in a later stage of the manufacturing process or changing
the process itself. As this example illustrates, environmental preferability
does not just involve substituting a "green" product for another.
It also involves questioning whether a function needs to be performed
and how it can best be performed to minimize negative environmental impacts.

The Department of Defense integrates pollution
prevention into all of its major weapons system acquisition
programs. For example, the New Attack Submarine (NSSN) Program
has worked to include environmental considerations in all phases
of the submarine's life cycle, from initial design to eventual
disposal some 30 or more years later.

By considering all viable environmental alternatives
during the design phase, the NSSN Program identified a number
of options that will result in benefits. Just a few examples
are listed below:

A redesigned nuclear reactor core will eliminate the need
for refueling and disposal of spent nuclear fuel, while achieving
a multi-million dollar cost avoidance.

31 percent reduction in the number of paints and coatings
used in manufacturing the NSSN while ensuring that all of
the selected paints satisfy applicable performance and environmental
requirements.

61 percent reduction in the number of adhesive products
to be used on the NSSN compared to the number required for
previous submarine classes.

80 percent reduction in the number of solvents and cleaners.

Research and development effort to identify and test a biodegradable
hydraulic fluid for submarines to replace the current toxic
mineral oil-based fluid.

By recognizing early on that the key to reducing
environmental impact throughout the ship's life cycle is
pollution prevention and hazardous material control and management,
the NSSN Program was able to design a submarine that meets strict
safety and performance requirements, achieves significant cost
savings, and minimizes risk to the environment.

A product or service's environmental preferability
is a function of multiple attributes from a life cycle perspective.

Federal agencies should consider the following concepts
in applying this principle:

a.Life cycle perspective - A product or
service has environmental impacts long before and after the Federal government
purchases and uses it. The manufacture, use, distribution, and disposal
of products create a variety of burdens on the environment. Federal agencies
should strive to purchase products or services with as few negative environmental
impacts in as many life cycle stages as possible. In other words, Federal
agencies should determine the "environmental preferability"
of a product or service by comparing the severity of environmental damage
it causes throughout its life cycle with that caused by competing productsfrom
the point of raw materials acquisition, product manufacturing, packaging,
and transportation to its use and ultimate disposal. By doing so, the
Federal government can minimize the overall environmental impacts of products
and services. In addition, by actively seeking and considering life cycle
information to inform buying decisions, Executive agency personnel can
send a clear signal that government business will go to those who consider
the effect of their product's life cycle on the environment.

Life Cycle Stages of a Typical Product

Although most people would agree that considering life cycle
impacts in purchasing decisions is desirable, there are disagreements
on how to make purchasing decisions that best reflect a life cycle perspective.
Even the term "life cycle" is interpreted differently by different
people. To some, it connotes an exhaustive, extremely time-consuming,
and very expensive analysis. To others, a life cycle perspective is possible
in an abbreviated process, in which a long list of potential environmental
attributes and/or impacts is narrowed to a few, allowing for comparison
across a particular product category. In addition, the ability of Federal
purchasers to make buying decisions from a life cycle perspective depends
on a variety of factors including: the type of product or service being
purchased; the availability of life cycle information and/or willingness
by the provider to give the information; and the availability of easy-to-use
tools that can translate this information to support purchasing decisions
by the Federal government. EPA recognizes that agencies may find it easier
to apply a life cycle perspective when the result will be internal agency
environmental benefits and/or cost savings rather than external benefits.
Nevertheless, EPA encourages agencies to consider reducing impacts along
all stages of the product or service life cycle.

This guidance promotes the use of a range of practices,
from life cycle considerations to a more rigorous, scientifically defensible
life cycle assessment methodology. EPA encourages Executive agencies to
use currently available tools as well as help refine and address the needs
of Federal purchasers. Examples of available tools and references are
listed in Section VI. For the most current list of available tools, Executive
agency personnel are referred to EPA's
EPP Program Web site. EPA also encourages experts both within and
outside of the Federal community to develop additional life cycle tools
to support environmental preferability decisions.

b.Multiple environmental attributes - Environmental
preferability should reflect the consideration of multiple environmental
attributes such as increased energy efficiency, reduced toxicity, or reduced
impacts on fragile ecosystems. In addition, these attributes should be
considered from a life cycle perspective. Focusing on one environmental
attribute of a product or a service, without considering others, might
inadvertently exclude important impacts on the determination of environmental
preferability. For example, improving one attribute (e.g., increased energy
efficiency or reduced toxicity) may result in other unintended environmental
life cycle impacts. It is also possible that focusing on a single aspect
of the product or service will cause Executive agency personnel to overlook
improvements that the vendor has or can make in other aspects of the product
or service. In short, it is difficult to be confident that an alternative
product is environmentally preferable without some consideration of multiple
attributes from a life cycle perspective. Analytical tools such as life
cycle assessment can help Federal agencies ensure the product or service
they purchase does not create new problems for some other aspect of the
environment by identifying other potential negative impacts that should
be alleviated.

Although the determination of environmental preferability
should be based on multiple environmental attributes, Federal agencies
may at times make purchasing decisions based on a single attribute
when that attribute distinguishes the product or service in a category.
In its environmentally preferable purchasing effort, EPA aims to build
upon those attributes that are well-defined, measurable and familiar to
Federal purchasers (e.g., recycled content and energy efficiency). EPA
also seeks to support the development of similar definitions and measures
for other attributes that are less understood and to advance consideration
of multiple environmental attributes in purchasing decisions.

The menu of environmental attributes described in Appendix
B offers a preliminary look at what should be considered in environmentally
preferable purchasing decisions. Many of the attributes are relevant to
a number of different product life cycle stages, while others are more
pertinent to one particular stage. The menu should serve as a means to
inform Executive agency personnel about the different types of attributes
that can make a product or service environmentally preferable. Each and
every element in the menu is not meant to be applicable to all products
and services nor is the menu all-inclusive

Determining environmental preferability might involve
comparing environmental impacts. In comparing environmental impacts,
Federal agencies should consider: the reversibility and geographic scale
of the environmental impacts, the degree of difference among competing
products or services, and the overriding importance of protecting human
health.

In determining environmental preferability, Executive agency
personnel might need to compare the various environmental impacts among
competing products or services. For example, would the reduced energy
requirements of one product be more important than the water pollution
reductions associated with the use of a competing product? The ideal option
would be a product that optimized energy efficiency andminimized
water pollution. When this is not possible, however, Executive agency
personnel will have to choose between the two attributes. It is important
to consider both the nature of the environmental impact and the degree
of difference among competing products.

There is no widely accepted hierarchy that ranks the attributes
or environmental impacts that are most important. The following three
factors are intended to help Executive agency personnel analyze the environmental
impacts of competing products and services and make decisions about environmental
preferability when faced with trade-offs among environmental attributes.
These factors are not listed in order of importance.

a.Recovery time and geographic scale -
Federal agencies should consider recovery time and geographic scale in
comparing environmental impacts. To what extent is an environmental impact
reversible? An impact is less acceptable if the recovery time is longer.2 The geographic scale of the problem and the importance of the affected
ecosystems are also significant. Global environmental impacts are more
significant, therefore, than ecological stressors that have a local or
regional ecosystem impact.3

The table shown below provides a basic framework for considering
the reversibility and geographical scale of environmental impacts and
includes some examples of how certain impacts might fit into the matrix.

While some environmental standards or other sources of comparative
information on products are national or international in scope, Federal
agencies should also be prepared to consider unique local impacts and
site-specific uses. Information based on an assessment of national or
global needs, by its nature, rarely allows for the consideration of local
impacts associated with how products are used, recycled, and/or discarded.
Executive agency personnel are encouraged to consider local factors, where
they are relevant, and not rely exclusively on national or global information.
For example, although it may be generally accepted that an aqueous-based
degreaser is preferred over a halogenated solvent degreaser, the environmentally
preferable purchasing decision may depend on whether there is sufficient
local wastewater treatment capacity to deal with the aqueous waste.

There may be rare occasions where the goal of minimizing
a local impact, such as smog, is in conflict with the goal of minimizing
a global impact, such as ozone depletion and global climate change. In
these instances, EPA encourages purchasers to engage as much as possible
in applying Principle #2 and aiming to prevent pollution, thereby avoiding
such trade-offs. Where there are unique local circumstances, the purchaser
can make the judgment that the local conditions and impacts should be
given priority.

ECOLOGICAL PRIORITY IMPACTS MATRIX

Geographic
Scale

Reversibility

|

Years

Decades

Centuries/
Indefinite

Local/
Regional

Erosion

Conventional
Pollutants

National

Hazardous
Air Pollutants

Chemical
Releases

Bioaccumulative
Pollutants

Global

Loss
of Biodiversity

Ozone Depleting
Chemicals

Global Warming
Gases

++ This matrix provides a few examples of how certain environmental
stressors and impacts might fall into the different categories of reversibility
and geographic scale considerations and is not meant to be comprehensive.

b.Differences among competing products - In some situations, a purchaser may determine preferability by looking
at the differences of environmental performance among competing products,
rather than by comparing environmental problems. Guiding Principle 3 addresses
the importance of identifying relevant attributes for a product. There
might be significant differences among competing products for some of
these attributes, while for others, the differences could be minimal.
In purchase comparisons, Executive agencies might prefer the product or
service that provides a significant improvement over competing products,
without making a determination that one environmental problem is more
significant than another. For example, a product that significantly reduces
toxicity might be preferable to one that makes a minimal reduction in
waste reduction.

c.Human health - A product or a service
should be at least equivalent to comparable products/services in protecting
human health to be considered environmentally preferable. EPA's Science
Advisory Board listed the environmental factors listed to the right as
significant contributors to human health risks.

List of High Priority Human Health Stressors
(not in any order of importance):

Ambient air pollutants

Hazardous air pollutants

Indoor air pollution

Occupational exposure to chemicals

Bioaccumulative pollutants

EPA recognizes that Executive agencies considering these
three factors (recovery time and geographic scale; differences among products;
and human health) must rely on providers of products and services to supply
practical environmental information on products. EPA encourages organizations
that provide environmental standards or other types of comparative product
information to consider these factors in evaluating and reporting environmental
information for purchasers.

Comprehensive, accurate, and meaningful information
about the environmental performance of products or services is necessary
in order to determine environmental preferability.

a.Importance of Environmental Information  Executive agency personnel will need comprehensive, accurate and
meaningful life cycle-based information about the environmental characteristics
of products and services in order to evaluate whether one product or service
is more or less damaging than another. Even with this thorough information,
however, making these evaluations can be difficult. Yet, without such
information, determinations of environmental preferability are even more
challenging. Executive agency personnel are encouraged to seek, and product
and service providers are encouraged to provide, life cycle-based information
about the environmental performance of products and services. This information
should be sought and provided in all appropriate stages of the acquisition
process including, but not limited to market surveys, request for proposals,
etc. (See Federal Acquisition Regulation, (FAR) 48 C.F.R. Subpart 23.7,
which includes a mandate for the acquisition of environmentally preferable
and energy-efficient products and services.

Executive agency purchasers may encourage product and service
providers to describe their product or service's performance according
to the menu of environmental attributes included in Appendix B (1).

Product and service providers' disclosure of environmental
information about their products and services will also foster competition
and encourage a market-driven approach to environmental improvement. The
accessibility of the information to the public (both Executive agency
personnel and the general public) will help ensure its accuracy and credibility.

b.What/How Information is Conveyed - A
number of resources about the environmental performance of products or
services are currently available. Two general categories of information
sources can be distinguished: (1) manufacturers who provide environmental
information (e.g., environmental claims, product profiles, etc.) about
their products either on the label or through product literature, including
advertisements; and (2) environmental information compiled, evaluated,
and reported by non-governmental entities. Included in this second category
are third-party certification programs that evaluate the environmental
aspects of products and award symbols (e.g., "seals-of-approval")
or compile "report cards" of environmental information. Non-governmental
entities may also verify specific claims made by manufacturers (e.g.,
paper contains 30 percent recycled content).

Information conveyed through claims and seals can help Executive agency
personnel identify environmentally preferable products, depending on the
types of products being purchased and the legal acquisition requirements
involved. A more detailed discussion of how Executive agencies can use
technical expertise and research of non-governmental entities in their
environmentally preferable purchasing practices is included in Section
V and Appendix D. In evaluating the environmental attribute claims made
by anyone, whether they are manufacturers, vendors, or other non-governmental
entities, Executive agency personnel should refer to the Federal Trade
Commission's (FTC's) "Guides for the Use of Environmental
Marketing Terms." (Green Guides.)

This section recommends steps that each agency can take
to implement the environmentally preferable purchasing provisions of EO
13101.

A. Policy directive and affirmative procurement
plans

Recognizing that effective implementation of environmentally
preferable purchasing will require clear direction and support from the
top levels of each agency, this Final Guidance recommends that each Executive
agency issue a Policy Directive promoting the practice. A sample is included
in Appendix C. The policy directive should include the elements listed
below:

An overall statement of policy:

Agency personnel should seek to reduce the environmental
damages associated with their purchases by increasing their acquisition
of environmentally preferable products and services to the extent
feasible, consistent with price, performance, availability, and safety
considerations.

Environmental factors should be taken into account as
early as possible in the acquisition planning and decision-making
process. (See EO 13101, Section 401.)

Responsibility for environmentally preferable purchasing
should be shared among the program, acquisition, and procurement personnel.

Establishing internal agency incentive and award programs
to recognize those people, teams, and interagency work groups who
are most successful at promoting the purchase of environmentally preferable
purchasing (see Executive Order 13101, Section 802). Collaboration
among agencies to provide education and training is highly encouraged.

In order to minimize the burden on Executive agencies, EPA
recommends that each agency incorporate in its Policy Directive to promote
environmentally preferable purchasing into its Affirmative Procurement
and Strategic Plans. This incorporation can transpire as agencies revise
their plans. Agencies should ensure that their Policy Directive is made
available to the field-level procurement and environmental personnel.

B. Pilot Projects

Section 503 (b) of EO 13101 states "[A]gencies are
encouraged to immediately test and evaluate the principles and concepts
contained in the EPA's Guidance on the Acquisition of Environmentally
Preferable Products and Services through pilot projects to provide practical
information to the EPA for further updating of the guidance." Furthermore,
Section 704 states "Each executive agency shall establish a model
demonstration program. . . to demonstrate and test new and innovative
approaches such as incorporating environmentally preferable... products...."
into model facility programs. To help Executive agencies implement these
provisions of the EO, this Final Guidance includes some suggested steps
for initiating and implementing pilot acquisitions.

The suggestions that follow are based on lessons from early
pilots undertaken by the General Services Administration and the Department
of Defense in partnership with EPA. Case studies from these and other
pilot projects are available from the Pollution Prevention Information
Clearinghouse (202 260-1023) or they can be accessed through EPA's
EPP Program Web site.

Additional pilot acquisitions will be important testing
grounds for applying the guiding principles and testing their applicability.
The pilots will also provide valuable information for the development
of tools and resources to facilitate widespread adoption of environmentally
preferable purchasing practices.

EPA will track pilots that are planned or already underway
on the EPP Web site, providing a clearinghouse for information on government-wide
activities related to environmentally preferable purchasing. (See EO 13101,
Section 503 (b)(4).) EPA will disseminate information about different
pilots among the agencies through the EPP Web site, updates, and fact
sheets to ensure that lessons learned are shared and used to inform other
pilot projects.

The discussion below further describes how these pilots
and demonstration projects might proceed. EPA encourages Executive agencies
to undertake pilots and use all existing sources of information and technical
expertise to carry them out. EPA is committed to supporting these pilots
and providing overall coordination and technical assistance, as resources
allow.

1.Selection of pilots. Selection of pilot
acquisitions is at the discretion of the individual Executive agencies.
There are at least two options for how agencies can approach this selection
process. First, an agency may want to identify an environmental problem
that it wants or needs to address. Once the problem has been identified,
the agency can develop a list of products and services that contribute
to that specific environmental problem. Alternatively, an agency may start
out with a product or service category for which it wants to find alternatives.
In either case, criteria that agencies might wish to consider in selecting
pilot acquisitions include:

Potential for a reduction in risk to human health and
the environment.

Status on EPA's prioritized list. Pursuant to EO
13101, Section 503 (a), and in order to assist Executive agencies
focus their efforts on minimizing serious environmental impacts, EPA
has developed a prioritized list of the top 20 product categories.
The complete list, along with a discussion of the methodology used
in its development can be found in EPA's EPP Web site.

Existence of less harmful product or service alternatives.
Alternatives could vary anywhere along the product or services'
life cycle, for example, different ways of manufacturing or disposing.
Alternatives might also include different ways of getting the same
result, even if it means acquiring a completely different type of
product or service.

Feasibility/degree of flexibility in the acquisition.

Products or services that are widely used within the
Federal government and are representative or typical of the procurement
system. This maximizes the pilot's potential value to others
by providing lessons about the effectiveness of the guidance and increasing
the likelihood that the pilot could be replicated. (See EO 13101,
Section 503 (b) (1).)

2.Implementation of pilot projects. In
implementing the pilot projects, Executive agencies can look to the process
and results of projects others have completed or develop a different approach
for environmentally preferable purchasing. In undertaking the pilots,
agencies are encouraged to:

Ensure the participation of environmental and procurement
experts.
Use all of the options available to them to determine the environmentally
preferable attributes of products and services in their pilot projects,
including the technical expertise of non-governmental entities. This
is pursuant to EO 13101, Section 503 (b) (2). More specific guidance
on the use of non-governmental entities is included in Appendix D.

Once a product or service has been chosen, pilots typically involve:

Determining environmentally preferable products and
services. This can be accomplished by Executive agencies:

Identifying product attributes that can serve as
indicators of environmental preferability. Agencies can look to
Appendix B for a menu of attributes. Selection of attributes should
be tied to the most significant environmental problems or impacts.

Collecting information from product and service
providers. This may require the development of contract language
to ensure that vendors provide environmental information.

With the recent changes to the FAR and the trend
toward best value contracting, agencies can now more easily consider
environmental factors when making purchasing decisions. However,
environmental information is often not provided by vendors. Thus,
it may be necessary for Executive agency personnel to clearly
request or require relevant environmental information from vendors
in market surveys and proposals whenever appropriate.

Evaluating the environmental information.

Incorporating results of the environmental information
research into the acquisition process to purchase environmentally
preferable products and services. While the acquisition strategy and
method are determined by the purchasing agency, EPA asks that agencies
select a strategy that:

Maximizes the number of environmentally preferable
product or service choices available to the purchasing agency.
Promotes competition across products and services in terms of
environmental performance.

Stimulates product and service process innovation
and continuous improvement.

Allows for the consideration of local environmental
conditions.
Promotes a definition of environmentally preferable products and
services that can improve over time.

Documenting the pilot effort, including a description
of how the project was initiated and implemented and the lessons learned.
A sample case study template is attached in Appendix E and is also
available on EPA's EPP Web site. The results of pilot projects
will be shared among Executive agencies through EPA's EPP Web
site.

More specific information about pilot implementation will
be made available through a variety of tools that EPA currently is developing
including: an interactive training module; a "best practices guide"
with examples of specific contract language that have been used by purchasing
agencies; and a database of existing environmental standards that have
been developed by governmental and non-governmental entities.

Section 12(d) of The National Technology Transfer and Advancement
Act of 1995 (NTTAA) (Pub. L. 104-113, §12(d), 15 U.S.C. 272 note) and
OMB Circular A-119 (63 FR 8546, February 19, 1998) direct Federal agencies
to use both domestic and international voluntary consensus standards in
lieu of government-unique standards in their procurement and regulatory
activities, except where it would be inconsistent with applicable law
or otherwise impractical. The Act's purpose is to reduce the cost
of procurement and regulation by requiring a Federal agency to draw upon
any suitable technical standard already used in commerce or industry rather
than inventing a new standard. Some of those standards might relate to
evaluating environmental performance and measuring the environmental attributes
of products or services. In establishing Environmental Preferable Purchasing
pilot projects or planning other environmentally-sensitive activities,
agencies should first determine whether there is an applicable voluntary
consensus standard that would meet its needs.

The NTTAA also requires a Federal agency, when it is consistent
with the agency's mission, authorities, priorities, and budget resources,
to participate in the standards-setting activities of voluntary consensus
standards bodies. Such participation helps ensure the development of standards
that meet the agency's needs, including those related to Environmental
Preferable Purchasing concerns. This collaboration can also promote national
goals and objectives. OMB Circular A-119 specifically mentions the need
to promote the use of environmentally sound and energy-efficient materials,
products, systems, services, or practices as well as the improvement of
public health and safety. (See OMB A-119, Section 7a.)

In the long run, institutionalizing the purchase of environmentally
preferable products and services requires that Executive agencies continue
their efforts after the pilot's are completed. Given that environmental
information about products and services is still scarce, agencies should
rely on all sources of information and technical expertise in making determinations
about environmental preferability. To foster agencies continue acquisition
of "green" products, EPA will coordinate the development and
standardization of environmental information about potential product and
service categories for future pilots. This effort will consist of identifying
environmental performance characteristics and measurement methods and
will involve technical experts both inside and outside the Federal government.
Executive agencies should examine all information generated through these
types of efforts. The agencies, and not the nongovernmental entities,
must make all final determinations regarding environmental preferability.

The experience gained from Executive agency pilots will
be key in determining the scope and nature of EPA's long-term activities
to advance Federal environmentally preferable purchasing. The lessons
learned and partnerships formed from these pilots will help establish
a broader infrastructure to support this initiative. EPA might use existing
mechanisms or help develop new resources such as guidance, networks, and
databases in support of the Federal purchasing community to build
this infrastructure. The infrastructure will help bridge the gap between
the environmental and procurement expertise within the Executive agencies.

All Executive agency personnel will have a role in creating
a demand for environmentally preferable products and services. Thus, the
infrastructure will also have to support the development of tools that
are easy and convenient for general and diverse use.

In light of the evolving acquisition landscape and the dynamic
nature of the marketplace, the infrastructure will have to be flexible.
In the increased globalization of the economy and trends toward commercialization
of the Federal marketplace, will also require agencies to coordinate this
initiative with new international trade and standardization developments.
Ultimately, the measure of this initiative's success will be in the
increased availability and purchase of products and services that pose
fewer adverse impacts on human health and the environment.

1. U.S. Congress, Office of Technology
Assessment, Green products by Design: Choices for a Cleaner Environment,
OTA-E-541 (Washington, D.C. U.S. Government Printing Office, October 1992) [Back to text]

2. This is based on
the findings of the Science Advisory Board, published in its 1990 report
entitled "Reducing Risk: Setting Priorities and Strategies for Environmental
Protection," a statement of policy on priority pollutants affecting
environmental and public health. In this report, environmental stressors
were judged to be significant based on two primary criteriathe geographic
scale and degree of reversibility of the impact.

The Science Advisory Board is a public advisory group providing
extramural scientific information and advice to the Administrator and
other officials of the Environmental Protection Agency. The Board is structured
to provide balanced, expert assessment of scientific matters related to
problems facing the Agency. [Back to text]